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Fast food workers have demonstrated in several cities over the last few months for a $15 minimum wage, often referred to as a "living wage." Lately McDonalds has previewed plans for automated customer ordering which will give the customer more ability to customize their order. These two events may be coincidence; however, use the concepts for cost minimization (graphically, isocost and isoquant curves) to argue that McDonald's automated ordering springs directly from the possibility of a substantial wage increase for its workforce. A graphical analysis is certainly welcome, but not required.
How does this affect the dollar-yen exchange rate?
Suppose that one must divide $1,000 among 100 students. Which divisions are efficient?
A monopolist has demand and cost curves given by: Find out the quantity that maximizes profit? What is the revenue and profit at that point?
is water a renewable or depletable resource? explain how water is allocated in the western us and how this may result
To begin your thread for a particular module, open the Key Terms document posted within each module, and select one of the key terms that interests you - Disccuison board on Managerial paradigms: ethnocentric, polycentric, and geocentric
A natural monopoly has a cost function c (q) = 400 + 25q and market demand D (p) = 200 - 2p. What are the monopoly's profit, output, and customer surplus when the price is set to marginal cost? Average cost?
Why is the banking system in the United States referred to as a fractional reserve bank system? What is the role of deposit insurance in a fractional reserve system?
Consider Toms labor supply decision. Tom can earn $15 per hour, but he faces a 20% tax rate and pays $4 per hour in child care expenses for each hour he works. What is Tom's 'real' hourly wage rate?
Which statement best characterizes Adam Smith’s concept of the “invisible hand”. Those who don’t work shouldn’t eat or else.
Inflation and unemployment-Suppose that, in an attempt to combat severe unemployment, the government decides to increase the amount of money in circulation in the economy.
Johnston production is the price taker which utilizes this cost structure in the short run:
Assume consumers expect a recession to begin in the next few months. They might react by trying to save more in case they are laid-off or have to work reduced hours. Under these circumstances
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